In a first, KSE-100 index crosses 80k mark

KARACHI: Stocks increased to an all-time high on Wednesday and the benchmark KSE100 index closed beyond the 80,000 points mark amid rising exports, hopes for the International Monetary Fund (IMF) bailout package and other positive economic developments.

The Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index increased by 680.78 points or 0.86 percent to 80,233.67 points against 79,552.89 points recorded in the last session. The highest index of the day remained at 80,405.24 points while the lowest level was recorded at 79,697.25 points.

Analyst Ahsan Mehanti at the Arif Habib Corp said, “Stocks closed all-time high in the corporate earnings season at PSX amid upbeat data on $30.7bn exports rising by 10.54pc and trade deficit narrowing by 12.3pc to $24.09bn in FY24.”

He said that government timelines for the privatisation of SOEs, and expectations for strong corporate payouts played a catalyst role for the record close.

The KSE-30 index increased by 215.83 points or 0.84 percent to 25,799.40 points against 25,583.56 points.

Traded shares increased by 123 million shares to 536.580 million shares from 413.153 million shares. The trading value increased to Rs22.722 billion from Rs16.597 billion. Market capital expanded to Rs10.593 trillion against Rs10.517 trillion. Of 447 companies active in the session, 256 closed in green, 135 in red and 56 remained unchanged.

Maaz Mulla, an analyst at Topline Securities, said the KSE-100 index surpassed the 80,000 mark, making an intraday high of +852 points (+1.07 percent) and closed at 80,233.

The cement sector maintained its positive momentum where KOHC, PIOC, LUCK, and MLCF saw positive growth. However, domestic cement sales dropped 4.6 percent to 38.18 million tonnes in FY24, while export dispatches surged by 56 percent to 7.11 million tonnes in FY24.

The banking sector attracted significant investor interest, with SBL, AKBL, NBP, HBL and JSBL closing on a positive trajectory.

Key contributors to the positive index movement included HBL, POL, HUBC, NBP, and SYS, collectively adding 388 points. Conversely, FFC, EFERT, PAKT, FABL, and INIL collectively detracted 146 points from the index.

The highest increase was recorded in Nestle Pakistan Limited shares, which rose by Rs129.41 to Rs7,060.41 per share, followed by Philip Morris (Pakistan) Limited, which increased by Rs54.80 to Rs663.71 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs134.99 to Rs18,162.50 per share, Rafhan Maize Products Company Limited followed it, which closed lower by Rs82.36 to Rs7,517.64 per share.

Brokerage Arif Habib Ltd stated the KSE-100 index broke its range to the upside, closing above the 80k mark with significant gains.

In a positive development, the finance minister expects Pakistan to secure a staff-level agreement with the IMF for a bailout package exceeding $6 billion this month. This potential agreement is anticipated to bolster investor confidence and provide much-needed support to the country’s economy.

For the remainder of the week, the 80k level is expected to build as a support zone, facilitating further upside expansion. Investors are optimistic about the market’s ability to maintain its upward trajectory, driven by strong corporate performances and favourable economic developments.

The market’s break above the 80k mark is a significant milestone, indicating a potential for continued growth and stability in the coming sessions.

Pak Elektron remained the volume leader with 34.586 million shares which closed higher by Rs1.72 paisas to Rs26.75 per share. Bank of Punjab followed it with 31.468 million shares, which closed higher by 37 paisas to Rs5.40 per share.

Other significant turnover stocks included National Bank XD, AKD Securities L, K-Electric Ltd, WorldCall Telecom, Fauji Fert Bin, Askari Bank, Unity Foods Ltd and Hum Network.

In Future Market, 304 companies recorded trading, of which 221 increased, 80 decreased and 3 remained unchanged.